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How a COVID-19 Recession Is Likely to Affect Buyout Performance

Preqin | 3.31.2020

Preqin and FRG assess buyout fund performance by vintage year running a private capital cash flow forecasting model under a pandemic scenario, and note a reversal in expectations. The buyout funds of 2018-2019 vintages were most likely to underperform both in median and maximum returns compared to the 2012-2017 vintages, absent the coronavirus, but are now more likely to outperform. The economic contraction with falling asset prices and difficult exit market environment create a different picture for the industry. Read more here.

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